Airtel Zambia is set to expand its mobile money offering as the company is soon expected to launch virtual cards which will enable Airtel mobile money account holders enjoy privileges comparable to traditional bank accounts.
Airtel Zambia has hinted that they will soon launch virtual cards in the Zambian market soon without disclosing the actual date for the launch. Airtel told the Zambian Business Times – ZBT that they are keeping their cards close to their chest as they do not want to let the cat out of the bag until the launch date.
A check by ZBT analysts on what was launched in other African markets regarding virtual cards shows that a similar partnership with MasterCard enabled mobile money account holders to pay for online services, apps, hotel, digital content and any other payment services that bank debit cards are able to do.
Once virtual cards are launched, it is projected that mobile money account holders will be enabled to shop online and pay for services like Netflix etc so long as one has a their phone and have an active mobile money account.
Mobile money in Zambia continues to grow with 2019 annual growth rate pegged at over 126% by the central bank – BOZ. Even as traditional banks continue to contract, merge and close down more brick and mortar branches, mobile money which operates through independent agents continue to aggressively expand year on year.
The introduction of virtual cards on mobile money accounts, if it delivers international and digital payment capabilities, will take away the debatable competitive advantage and the need for traditional bank accounts for the vast majority of consumers and medium size businesses.
